Should You Make Room in Your Family Budget for Insurance?

Families today are under more financial pressure than ever before. As a result, there are a number of things that families would once have taken for granted, such as insurance, that are now dependent upon there being room in the family budget. With many families having to make tough financial decisions, It is understandable that lots of families are questioning the wisdom of buying insurance.

However, insurance is one of those things that you don’t really appreciate until you don’t have it.   While the costs of insurance are unavoidable, when you compare them to the often sudden and unexpected costs involved in replacing uninsured items or fixing uninsured appliances, they are an absolute steal.

One of the reasons that many families are hesitant about buying insurance is because there are simply so many different types and providers to choose from. While the competition is good, at least in theory, for customers, the range of choices can sometimes be overwhelming.

What Types of Insurance are There?

It is easier to understand the value of insurance when you understand what different types exist. There are types of insurance that are designed for insuring individual objects, such as the insurance you might take out on your smartphone, as well as types like home insurance that cover property or the items within it.

There are some types of insurance that you are legally required to have, such as home insurance and car insurance for people who own cars or have mortgages. But while most types of insurance are optional, they are often highly advisable.

Home Insurance

If you own your own home and it’s covered by a mortgage, then you are required to have home insurance. There are two types of home insurance, buildings insurance, and contents insurance. The difference between the two is easy enough to understand. Building insurance covers the cost of any repairs or rebuilding that needs to be done to your home in the event of unexpected damage. Meanwhile, contents insurance covers the cost of any possessions that are lost or damaged during unexpected damage.

If you are still not sure which type of home insurance will serve you best then check out the various online insurance comparison websites where you will find different types of home insurance with various features and find the one that suits you most.

Neither type of insurance will cover general wear and tear. If you leave your property unoccupied for more than 60 days, this also invalidates most insurance policies. You don’t want to end up having to foot the costs of unexpected home repairs. Home insurance will, therefore, keep you safe financially.

As with any insurance policy, you will have to carefully read the terms and conditions in order to make sure you understand exactly what is covered by home insurance.

Contents insurance will allow you to either repair or replace any possessions that become damaged or lost. Again, you will need to look at the specific policy in question to find out exactly what is and isn’t covered. Some types of contents insurance will also cover your items when they are outside the home. You usually have to pay an excess for any claim that you make, this means that you will have to pay some money to repair or replace items, but it is considerably less than it would be without insurance.

Boiler Cover

Boiler cover is a type of emergency home cover that covers your boiler, and often other plumbing, drains, and electrics as well. Home Emergency cover will cover the costs of any unexpected home emergencies, such as boiler service. The Certi UK website is a great example of the kind of boiler cover that families on a budget can still consider.

As with most types of insurance or damage cover, the boiler cover package you buy might come with a number of other services. Having your boiler covered is a great idea, as you don’t want to be footing the costs of repairing a boiler when you aren’t prepared for them, but it is far from the only thing in your home that can go wrong unexpectedly and put a huge hole in your finances.

An issue with your plumbing or electrics can affect your boiler, depending on the type you have. It, therefore, makes a lot of sense to have both of them covered under the same plan.

Car Insurance

Car insurance is a legal requirement if you drive a car. Therefore, for many families, it is going to be an unavoidable expense. However, there are a number of things you can do to reduce the cost of your car insurance. The first, and easiest, is to use a price comparison website to check what insurance providers are available and who can offer you the best deal.

In the UK, you need to have third-party cover at the minimum; this covers other people who ride in your car such as passengers from any injury that they might sustain in an accident. However, if your car is lost or stolen, then you will be responsible for the costs.

You can also opt for third-party, fire, and theft insurance, which will cover the same things as standard third-party insurance but will also include fire and theft. This means that if your car is stolen or set on fire, you will be able to recover its value.

If you are looking at insurance plans for one of your children who are old enough to drive, then you’ll have to bite the bullet as far as the prices are concerned. Insurance for young drivers is much more expensive than insurance for older drivers because they are seen as being a much higher risk.

Travel Insurance

It’s relatively easy to holiday on a budget these days. If you’re willing to take your holiday in the UK, you can save yourself a lot of money. if you decide to travel abroad, there will inevitably be some extra costs involved in that you will have to work into your budget. Nobody plans on becoming ill or injured when they get on holiday, but this is always going to be a possibility.

Travel insurance will protect you against the cost of healthcare while you are on holiday. Even in countries that have a system similar to the NHS in the UK, you will either need to have travel insurance or you will have to pay the cost of any treatment that you received. Medical treatment can quickly become very expensive, so travel insurance is worth having.

Travel insurance packages will not only cover the cost of any medical treatment you receive; they will also cover the cost of flying you home should the need arise. It’s worth noting that most travel insurance packages will not cover you for a pre-existing condition. There are also certain types of holidays, such as extreme sports holidays or holidays during which the policyholder undertakes dangerous activities that will not be covered by travel insurance policies.

Insurance is worth spending money on even when you’re living on a budget. It is better to take the small hit to your finances each month then it is to take the risk of suddenly being hit with a bill for thousands of pounds. Should a boiler or the pipes in your home fail, the potential for damage to your property is very high. The cost involved in repairing aren’t even worth thinking about, ensuring that you have the right insurance in place is a much better approach.


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